1) The above results have been reviewed by the Audit Committee and taken on record by the Board of Directors at their respective meetings held on 27th January 2006.

2) The figures for the corresponding periods in the previous year, are not comparable with the current year’s figures due to the following reasons:

Figures pertaining to the different periods of the previous year are inclusive of Power Unit Plant and Power Products Division, which were sold to AVTEC Limited on 28th June 2005.

The current financial year started on 1st July 2005 and thus, the cumulative figures are for the six month period ended 31st December’05, whereas the figures for the corresponding period are for the nine month period ended 31st December’04.

Certain provisions of Accounting Standards 2, 15 and 22, have been fully complied with and were given effect to in the accounts for the quarter/year ended 30th June 2005. The impact of the non-compliance of the same on the results for the quarter/nine month ended 31st December 2004 is not material and hence these figures have not been restated.

3) Tax liability (MAT) for the current financial year will be determined and provided for at the end of the year.

4) As per the past practice, the company has not provided against certain doubtful debts, claims and advances, as it is hopeful of recovering these amounts. The above matter was referred to by the auditors in their report for the period ended 30th June 2005.

5) Other income includes Rs.498 Lacs as profit from sale of immovable property.

6) Prior period figures have been re-grouped/rearranged, wherever necessary.

7) Number of Investor complaints :

Pending at the beginning
of this quarter – 8

Received during the quarter – 52

Disposed off during the quarter – 56

Lying unresolved at
the end of the quarter – 4

Segment-wise Revenue, Results and Capital Employed

(Rupees in Lacs)

Particulars

Quarter
ended

period
ended

15-monthsperiod ended

31.12.05

31.12.04

31.12.05(6 month)

31.12.04
(9 month)

30.06.2005(Audited)

1

segment
Revenue (Net Sales)

a)
Automobiles

11459

20890

23627

57033

89294

b)
Automatic Transmissions

-

3362

-

8772

15479

c)Others

13

20

20

75

91

Total

11472

24272

23647

65880

104864

Less
inter Segment Revenue

-

-

-

-

-

Total
Net Salary /income from operations

11472

24272

23647

65880

104864

2

Segment
Results

Profit(+)Loss(-)before
interest and taxes

a)
Automobiles

-1095

495

-2476

-1797

3103

b)
Automatic Transmissions

-

979

-

2341

8436

C)
Others

-30

-35

-73

-85

-195

Total

-1125

1439

-2549

459

11384

Less:
Interest

279

1072

585

2961

4834

Less:
Unallocable income

Net
of unallocable income

99

188

99

260

-3737

Profit/Loss(-)
before Tax

-1503

179

-3233

-2762

10287

3

Capital
Employed for the reportable segments
(As at the end of the period)

a)
Automobiles

17166

30183

17133

30183

23517

b)
Automatic Transmissions

-

7116

-

7116

-

c)
Others

158

163

158

163

288

Capital
Employed in reportable segments

17324

37462

17324

37462

23805

The products covered in the reportable business segments are as follows: -